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Location: Central Bank of Bahrain Volume 3—Insurance > Part A > High Level Standards > GR General Requirements > GR-1 Books and Records
  • GR-1 Books and Records

    • GR-1.1 General Requirements

      • GR-1.1.1

        The requirements in Chapter GR-1 apply in full to Bahraini insurance licenseesG . The requirements in Chapter GR-1 also apply to overseas insurance licenseesG , but only with respect to the business booked in their branch in Bahrain and the records of that branch.

      • GR-1.1.2

        All insurance licenseesG must maintain books and records (whether in electronic or hard copy form) sufficient to produce financial statements and show a complete record of the business undertaken by a licensee, including records sufficient to verify the identity of customersG . These records must be retained for at least 10 years according to Article 60 of the CBB Law.

        Amended: October 2018
        Amended: January 2007

      • GR-1.1.3

        For those insurance firmsG granted grandfathering provisions as per Paragraph AU-1.1.15, separate books and records must be maintained in respect of both general and long-term insurance businessG . The transactions relating to each kind of business must be maintained separately. The insurance firmG must maintain such accounting and other records as necessary to identify all assets and liabilities in respect of each kind of business.

        Amended: January 2007

      • GR-1.1.4

        Unless otherwise agreed to with the CBB in writing, records must be kept in either English or Arabic. Any records kept in other languages must be accompanied by a certified English or Arabic translation. Records must be kept current. The records must be sufficient to allow an audit of the licensee's business or an on-site examination of the licensee by the CBB.

        Amended: January 2007

      • GR-1.1.4A

        Translations produced in compliance with Rule GR-1.1.4 may be undertaken in-house, by an employee or contractor of the licensee, providing they are certified by an appropriate officer of the licensee.

        Added: January 2007

      • GR-1.1.5

        For captive insurersG , the maintenance of books and records may be carried out by an insurance managerG . Should this be the case, the captive insurerG must ensure that the CBB has access to these records at any time. In addition, these records must be sufficient to allow an audit or an on-site examination by the CBB of the captive insurerG .

        Amended: January 2007

      • GR-1.1.6

        Records must be accessible at any time from within the Kingdom of Bahrain, or as otherwise agreed with the CBB in writing.

        Amended: January 2007

      • GR-1.1.7

        Where older records have been archived, or in the case of records relating to overseas branches of Bahraini insurance licenseesG , the CBB may accept that records be accessible within a reasonably short time frame (e.g. within 5 business days), instead of immediately. The CBB may also agree similar arrangements for overseas insurance licenseesG , as well as Bahraini insurance licenseesG , where elements of record retention and management have been centralised in another group company, whether inside or outside of Bahrain.

        Added: January 2007

    • GR-1.2 Customer and Transaction Records

      • Customer Records

        • GR-1.2.1

          Insurance licenseesG must keep records with respect to all customerG relationships that remain active or potentially active. These records must be in hard copy or in original form, and retained for at least ten years after a customerG relationship has terminated.

          Amended: October 2007

        • GR-1.2.2

          CustomerG records include original account opening and due diligence documentation including identification information, sufficient to confirm compliance with all statutory and regulatory Know Your Customer requirements (see Module FC).

        • GR-1.2.3

          The requirement in Paragraph GR-1.2.1 applies to all customerG facilities booked in Bahrain by the licensee or where a customerG relationship is administered from Bahrain. Licensees may not use record-keeping systems outside Bahrain for customerG business booked in Bahrain, except for back-up purposes only.

        • GR-1.2.4

          For captive insuranceG , where the customersG are limited to related companiesG , the due diligence requirement does not apply.

          Amended: January 2007

      • Transaction Records

        • GR-1.2.5

          Insurance licenseesG must keep completed transaction records for as long as they are relevant for the purposes for which they were made (with a minimum period in all cases of five years from the date when the transaction was completed) – see Module Section FC-7.1). Records of completed transactions must be kept whether in hard copy or electronic format as per the Legislative Decree No. (28) of 2002 with respect to Electronic Transactions "The Electronic Transaction Law" and its amendments.

          Amended: July 2017
          Amended: October 2007
          Amended: January 2007

        • GR-1.2.6

          [This Paragraph has been deleted in July 2017].

          Deleted: July 2017

        • GR-1.2.7

          In the case of Bahraini insurance licenseesG , the requirement in Paragraph GR-1.2.5 applies only to transactions relating to business booked in Bahrain by the licensee. It does not relate to transactions relating to business booked in overseas branchesG or subsidiariesG of the licensee.

          Amended: January 2007

        • GR-1.2.8

          In the case of overseas insurance licenseesG , all the requirements of Chapter GR-1 are limited to the business booked in their branch in Bahrain and the records of that branch (see GR-1.1.1).

      • Keeping of Separate Client Accounts

        • GR-1.2.9

          An insurance brokerG must, in connection with any premiums received in the course of its business, establish and maintain separate clientG accounts separate from those used for its own funds.

        • GR-1.2.9A

          Specific Rules and guidance dealing with the holding of client money are contained in Module CL (Client Money).

          Added: April 2012

        • GR-1.2.10

          An insurance brokerG must not make withdrawals from its clientG accounts for any purposes other than those of the clientG .

        • GR-1.2.11

          Payment of premiums to insurance firmsG , or commissions (brokerage) to the insurance broker'sG own accounts shall not be effected until the premiums to which these payments relate have been duly received from that clientG and credited to the clientG account.

        • GR-1.2.12

          In respect of premiums booked in Bahrain, in relation to residents and non-residents of Bahrain, these accounts are to be maintained with a retail bank licensed to operate in the Kingdom of Bahrain.

          Amended: January 2007

        • GR-1.2.13

          [This Paragraph was deleted in April 2012].

          Deleted: April 2012

        • GR-1.2.14

          [This Paragraph was deleted in April 2012 and new guidance is now contained in Paragraph CL-1.1.9].

          Deleted: April 2012

        • GR-1.2.15

          [This Paragraph was deleted in April 2012 and new guidance is now contained in Paragraph CL-1.1.10].

          Deleted: April 2012

        • GR-1.2.16

          [This Paragraph was deleted in April 2012].

          Deleted: April 2012

    • GR-1.3 Other Records

      • GR-1.3.1

        Insurance licenseesG must maintain the following records in original form or in hard copy at their premises in Bahrain:

        (a) Internal policies, procedures and operating manuals;
        (b) Corporate records, including minutes of shareholders'G , Directors'G and management meetings;
        (c) Accounts, books, files and other records that adequately record all the business affairs of the insurance licenseeG , and any other records that substantiate the value of the assets, liabilities and off-balance sheet activities of the licensee;
        (d) Correspondence with the CBB and records relevant to monitoring compliance with CBB requirements;
        (e) Reports prepared by the insurance licensee'sG internal and external auditors; and
        (f) Employee training manuals and records.
        Amended: January 2007

      • GR-1.3.2

        In the case of Bahraini insurance licenseesG , these requirements apply to the licensee as a whole, including any overseas branchesG . In the case of overseas insurance licenseesG , all the requirements of Chapter GR-1 are limited to the business booked in their branchG in Bahrain and the records of that branchG (see GR-1.1.1). Overseas insurance licenseesG are thus not required to hold copies of shareholders'G and Directors'G meetings, except where relevant to the branch'sG operations.

        Amended: January 2007

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